Follow Barack Obama prior and during his tenure as the 44th President of the United States. Read about my personal observations along with every day facts as they happen. This blog will only submit factual information about the first black President, now in his 2nd term of office.

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Thursday, August 4, 2011

Today was another bad day for the New York Stock exchange, as stocks plummeted 512 points. Where are the safeguards? The Dow tumbled 512 points to it's lowest point ever for 2011 below all gains for the entire year. So what's next, another recession? People seem to believe that the stimulus didn't work, according the the president of Euro pacific Capital, Peter Schiff.
The market is not in this declining position because of the stimulus, but because people seem to be behind the trigger. As soon as there is a bad word about something within the market, they pull stocks out. There seems to be a larger interest investing only in the short term. All they do is worry about things like the weak job market and anything that may affect their stock. They never think that how they handle their stock is what also affects the market in a domino effect. Investors are in a "total fear" mode according to Bob Doll, chief equity strategist at the world's largest money manager, BlackRock.
So now it's not the National Debt Ceiling issue we must worry about, but for ideas that people now fear for a global slowdown in lu of recent weak economic data. The unemployment rate is holding steady at 9.2%, even though creation of 75,000 jobs in july were reported. Oil prices are continuing to fall, as the cost of a barrel of oil is now down to $86.63. Major company shares, like GM, and European companies such as UKX, Germany's DAX and France's CAC are also tumbling down between 3 and 4 percent.
U.S. investors are now seeking out low risk assets that include Treasuries and gold.
But with all the activity, the market is not solid enough for investors to take risks and invest as they have in the past.